Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. Record single day food sales at M&S
Amidst a busy day for reporting amongst UK retailers, Marks and Spencer LON:MKS have published numbers for the 13 weeks to 28th December. Food sales are ahead by 8.9%, whilst growth in the clothing, home and beauty category was rather more moderate, up 1.9%. That included a record day for food sales and a record week for online non-food and whilst the outlook remains blighted by broader economic weakness, management note there is still the potential to power further growth based on what is within their control.
2. Market share hits highest level since 2016 at Tesco
Supermarket giant Tesco LON:TSCO issues its Q3 and Christmas numbers today, with sales over the 19 week period to 4th January being released. Total revenue is up by 3.1% with the Republic of Ireland leading the pack, whilst wholesaler Booker was the notable drag, reflecting falling tobacco sales and weakness in part of its Best Food Logistics division. In the UK, market share continues to grow, reaching its highest level in almost 10 years, supported by the company’s value proposition. The outlook is for the momentum to be sustained and the upgraded guidance given in the interim results remains on track.
3. Special dividend from B&M as cash generation impresses
B&M European Value Retail LON:BME completes a trifecta of retailer reporting today, with numbers for the 13 weeks to 28th December being issued. Group revenues for the quarter were up by 2.8%, with significant percentage terms expansion noted in the smaller French market. New store openings for the remainder of FY25 and also FY26 remain on track, whilst the company’s strong return on capital is also facilitating the payment of a 15p special dividend. Full year profit guidance has been tightened to £620m-£650m, with the upper band moving down, previously calling £620m-£660m.
